Travelling Allowance Policy 2019/2020 3/29/2019 - Bitou Municipality
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3/29/2019
Travelling Allowance
Policy
2019/2020
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
0FINAL DRAFT TRAVELLING ALLOWANCE SCHEME REPLACING THE
PERK CAR ALLOWANCE SCHEME 1. OBJECTIVES OF THE SCHEME ... 2
2. PRINCIPLES OF A TRAVELLING ALLOWANCE SCHEME ..................... 2
3. REQUIREMENTS FOR PARTICIPATION ................................................. 3
4. RULES AND PRINCIPLES APPLIED ......................................................... 3
5. AD-HOC TRAVELLING NON-PARTICIPANTS IN TRAVELLING ............. 5
SCHEME INSIDE AREA OF JURISDICTION ................................................. 5
6. COMPENSATION ....................................................................................... 5
7. REIMBURSEMENT FOR KILOMETERS OUTSIDE AREA OF ................ 6
JURISDICTION ............................................................................................... 6
8. APPROVALS ............................................................................................. 6
9. HOW TO TREAT EMPLOYEES ON CURRENT SCHEMES ..................... 7
11. ALLOWANCES PAYABLE TO EMPLOYEES RECEIVING ANNUAL .. 9
ALL INCLUSIVE SELF STRUCTURED REMUNERATION PACKAGES ...... 9
12 TERMINATION .......................................................................................... 9
13. EFFECTIVE DATE ................................................................................. 10
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
11. OBJECTIVES OF THE SCHEME
The scheme must provide for participation by employees of the municipality
who, with the consent of the council make use of private transport in the
execution of official duties. The policy also provides for the payment of a
travelling allowance as part of benefits payable to employees in terms of the
position occupied and conditions of appointment. Participation is thus
determined by the usage of private transport for official purposes, irrespective
of whether the utilisation of such transport is temporary, occasional or
continuous, as well as conditions of appointment, taking cognisance of the cost
benefits and financial considerations.
2. PRINCIPLES OF A TRAVELLING ALLOWANCE SCHEME
2.1Must be reasonable towards both the municipality and the employee.
2.2 Must primarily be aimed at compensating for actual transport cost
incurred in the execution of duties.
2.3 Must provide a meaningful basis of compensation
2.4 Must prescribe benefits and conditions for employees who have to use
private transport for the in the execution of official duties
2.5 Must be updated regularly to prevent over or under compensation.
2.6 Must take into consideration the geographical area of the municipality
when limits or conditions are determined
2.7 Must provide for adequate compensation for employees travelling on an
ad-hoc basis.
2.8 Must use up to date market related values for calculation of
compensation amounts
2.9 Must provide for fixed as well as running cost components.
2.10 Must provide for minimum and maximum kilometres travelled.
2.11 Must provide for adequate control by supervisors.
2.12 Must provide for the suspension of benefits under certain conditions.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
23. REQUIREMENTS FOR PARTICIPATION
3.1 Sole use of own transport by the incumbent must be a prerequisite in
the execution of official duties.
3.2 Appropriate private transport, in accordance with the job requirements
and duties of the position must be available for daily official use. The
preferred vehicle to be used by the incumbent for the purpose of official
travel must be registered on the scheme and a valid vehicle registration
certificate which must be in the names of the incumbent must be
presented prior to the payment of any allowance in terms of the scheme
3.3 Log sheets substantiating travelling may be required to be submitted to
a relevant HOD from time to time. Any official can be required by the
respective HOD to make use of an electronic trip logging system as
supplied by the municipality to substantiate actual kilometres travelled
and/or claimed.
3.4 Appointment on, promotion to, or grading as a level in the organization
regarded as being management and to which a travelling allowance
therefore accrues as part of the conditions of service.
4. RULES AND PRINCIPLES APPLIED
4.1. Basis of calculation of monthly allowance:
4.1.1. The appropriate A.A. Rates Table should be used in determining
the monthly travelling allowance.
4.1.2. The fixed cost component to be determined as follows: The basic
salary of an incumbent, annual notch amount plus 13th cheque as
a total value are to be used as an equivalent of the purchase price
of the vehicle, the fixed cost per kilometre as reflected in the
10,000km column of the table equal to the fixed cost determined
should then be multiplied by the kilometre allowance applicable
to the incumbent to determine the monthly fixed cost amount. (D)
4.1.3. The Vehicle running cost to be determined as follows:
4.1.3.1. Calculate the fuel cost per kilometre relevant to the vehicle
of the incumbent registered on the scheme to a maximum
engine capacity of a 2200cc vehicles in accordance with
column “A” of the running cost tables of the AA rates Table,
by taking the fuel factor and multiplying it with the fuel price
as updated bi-annually (1 April and 1 October) as follows:
(Fuel factor) x (Fuel Price) = fuel cost per kilometre (A)
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
34.1.3.2. Add the service and repair cost in cent per kilometre as
reflected in column “B” of the running cost table of the AA
rates tables (B)
4.1.3.3. Add the tyre cost in cent per kilometre as reflected in
column “C” of the running cost table of the AA rates tables
(C)
4.1.3.4. Add together the result of (A) + (B) + (C) to determine the
total vehicle running cost per kilometre.
4.1.3.5. Now add together the fixed cost per month (D) as
determined in 4.1.2 above and (A) + (B) + (C) to determine
the total cost per kilometre that the incumbent is entitled
to. This amount is then to be multiplied by the kilometre
allowance allocated to the position to determine the
monthly travelling allowance.
4.2. The geographical area of the municipality as well as the level of seniority
of the position must be taken into consideration in determining the
kilometre limits and the following is proposed:
4.2.1 Positions qualifying will receive allowances based on the following
kilometres
4.2.1.1 Post level T15 to T20 including all management staff and
fixed terms contract employees where the T-level is
determined by Council - 850Km
4.2.1.2 Employees in T14 level, all management staff and fixed terms
contract employees where the T-level is determined by
Council - 750 Km.
4.2.2 If the fixed kilometre allowance above is exceeded, running cost
equal to that of the vehicle registered on the scheme will be paid
for all kilometres in excess of the kilometre quota that is
substantiated either by log sheets or electronic log sheets
generated from the electronic trip logger system submitted.
4.2.3 The monthly fixed allowance as determined in terms of the post
level applies to all official travel inside the area of jurisdiction of
the Bitou.
4.2.4 No additional compensation will be paid to incumbents for official
travel if travelling is less than the kilometre quota determined for
the position.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
45. AD-HOC TRAVELLING NON-PARTICIPANTS IN TRAVELLING
SCHEME INSIDE AREA OF JURISDICTION
4.3. An employee who does not qualify for participation in terms of the
requirements of the scheme will be compensated for Ad-Hoc
kilometres travelled through a reimbursement of the actual kilometres
return trip, measured from the place of residence (accept if the
employee is at work, when he/she is expected to travel for official
purposes, in which case, the place of work will be used to calculate
actual distance travelled) to the destination on the shortest possible
route (return trip)
4.4. Reimbursement for travelling will be calculated at the rates approved by
the Department of Transport for private transport used for official
purposes.
4.5. Employees requesting re-imbursement for ad-hoc travelling must
provide the municipality with proof of the vehicle particulars to enable
the processing of the claim.
4.6. All ad-hoc travelling must be approved by the respective Heads of
Department in advance.
6. COMPENSATION
6.1 The travelling allowances applicable to incumbents will be paid monthly
in arrears.
6.2 Kilometres in excess of the maximum kilometre limit will be paid with the
monthly travelling allowance in arrears.
6.3 Ad hoc travelling claims will be paid to employees upon submission of
an approved claim on a weekly basis with the provision that not more
than 2 (Two) claims per employee will be paid per month.
6.4 Ad hoc travelling claims for trips outside the area of jurisdiction may be
considered to be paid on an advance basis with the provision that no
advance be paid to employees more than 5 days prior to the
scheduled trip.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
57. REIMBURSEMENT FOR KILOMETERS OUTSIDE AREA OF
JURISDICTION
7.1 Staff taking part in the travelling allowance scheme – A
reimbursement of the actual kilometres travelled return trip,
measured from the place of work to the destination calculated at the
rates approved by the Department of Transport for private transport
used for official purposes. For the purpose of calculation the
reimbursement the interval for a 1951-2150cc petrol sedan vehicle,
category “A” on the rates table of the Department of Transport must
be used.
7.2 Staff not taking part in a travelling allowance scheme and essential
car user scheme participants - A reimbursement of the actual
kilometres travelled return trip, measured from the place of residence
to the destination calculated at the rates approved by the Department
of Transport for private transport used for official purposes. For the
purpose of calculating the reimbursement, the vehicle particulars
used for the trip will be used subject thereto that the engine capacity
will be capped at 2150cc
7.3 Councillors - A reimbursement of the actual kilometres travelled
return trip, measured from the place of residence to the destination
calculated at the rates approved by the Department of Transport for
private transport used for official purposes as determined in terms of
the Remuneration of Public Office Bearers Act.
7.4 Where the trip necessitates that travelling be done directly from the
place of residence and back, the actual kilometres travelled will be
calculated on a return trip basis from the place of residence instead of
the place of work.
8. APPROVALS
8.1 Participation – The Municipal Manager is mandated to approve
participation in the scheme upon receipt of sufficient evidence that an
incumbent qualifies in terms of the rules of the scheme.
8.2 Exceeding of monthly kilometres – The respective Heads of
Department to approve, upon submission of log sheets by the
incumbent to substantiate the kilometres travelled.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
68.3 Ad-hoc kilometres – Approval by the relevant Head of Department
upon submission of a valid claim (including prior approval) by the
respective officials.
8.4 All approvals in terms of the Travelling Allowance scheme, whether
for participation in the scheme or for ad-hoc kilometres travelled must
be confirmed in writing.
9. HOW TO TREAT EMPLOYEES ON CURRENT SCHEMES
9.1 In order to ensure parity in the application of travelling allowance
schemes it would be preferable to migrate all employees to the new
scheme, employees have however been appointed under certain
conditions of employment and the application of current policies have
been applied in accordance with certain practices that will place a
huge financial strain on recipients of the travelling allowances if all
staff are migrated from the onset. Migration of employees will
therefore be handled as follows:
9.1.1 Employees may exercise a once-off option to voluntarily migrate to
the new travelling allowance scheme.
9.1.2 Employees may choose to remain on the current PERK Scheme
where-after their allowances will be fixed at the current amounts, with
no possibility of an increase until they replace their vehicle where-after
they will be transferred to the new scheme.
9.1.3 All new staff members qualifying to participate in the travelling
allowance scheme from date of adoption of the policy will be placed
on the new travelling allowance scheme.
9.1.4 Employees participating in the essential car user scheme will remain
on that scheme with the exception that reimbursement for travelling
outside the area of jurisdiction will be done in accordance with the
provisions set out in point 7.2 of the policy.
10.1 Toll fees – Toll fees will be reimbursed upon submission of Tollgate
receipts by the incumbent. E-toll fees where applicable will be
reimbursed on submission of a valid e-toll invoice made out to the
official receiving the travelling allowance for the vehicle registered on
the scheme.
10.2 Determination of kilometre distances – The council will determine the
standard distances between the municipal offices at its nodal point
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
7and all other offices, municipalities, or venues that are visited on a
regular basis by its employees. The standard kilometres must be used
upon submission of log sheets to substantiate kilometres travelled.
10.3 If no standard distance measurements are available the shortest
distance to the destination travelled to must be used as actual
kilometres travelled.
10.4 No official transport shall be provided to an incumbent receiving a
travelling allowance.
10.5 An official receiving a travelling allowance must at all times ensure that
a fully functional and operational vehicle that suits the requirement of
the job to be performed is available for the execution of his/her duties.
10.6 Officials receiving travelling allowances must at all times ensure that
the vehicle registered on the scheme is adequately insured against
theft and accident and proof should be submitted to the municipality on
an annual basis.
10.7 If the maximum kilometre limit for a specific incumbent or position is
exceeded the actual kilometres travelled must be substantiated by log
sheets, where-after the excess kilometres travelled will be reimbursed
on a running cost basis only, no additional fixed portion will be
payable.
10.8 Should there be an abnormal fluctuation (> than10%) in the fuel price
(per price confirmation from local filing stations) measured over the
review period, the CFO is authorised to recalculate the fuel
component of the variable portion of the allowance payable to
employees and update the allowances to employees accordingly. A
fuel price adjustment will also be done concurrent with the
implementation date of the annual budget being 1 July of each year.
10.9 Review of the amounts payable should be done Bi-Annually and the
municipal manager or his delegated authority is authorised to do so in
terms of the rules and provisions of this policy.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
811. ALLOWANCES PAYABLE TO EMPLOYEES RECEIVING ANNUAL
ALL INCLUSIVE SELF STRUCTURED REMUNERATION PACKAGES
11.1 Employees paid an annual all-inclusive cost to company package that
is not linked to a T-level may elect to receive a portion of their annual
remuneration as a travelling allowance, this portion is not linked to the
AA tables upon which the calculation of travelling allowances of full time
employees are based, and will therefore not be adjusted in accordance
with the changes of the AA rates from time to time.
11.2 The running cost reimbursement and other matters not covered by this
policy will be contractually agreed upon with the respective incumbent.
12 TERMINATION
12.1 Should the job requirements of an incumbent receiving a travelling
allowance change through any process of re-deployment, re-structuring
or amendment of the operational requirements of the Municipality in
any way whatsoever thereby causing that it is no longer necessary to
regularly travel for official purposes, the travelling allowance payable to
the incumbent will cease to be paid within 6 months of such re-
deployment, re-structuring or amendment of the operational
requirements of the Municipality.
12.2 Should an incumbent, after the conclusion of a disciplinary process be
demoted in rank resulting in the recipient of a travelling allowance to fall
outside the applicable T-levels thereby disqualifying the incumbent from
taking part in the travelling allowance scheme, the payment of the
allowance will cease within three months from the date of such final
ruling of demotion by the disciplinary committee or appeal authority.
12.3 Should any employee be found guilty of defrauding or attempting to
defraud the municipality in any way with regards to the requirements for
participation in the scheme or in respect of any claim submitted for
travelling done, the Municipal Manager may immediately terminate the
payment of any travelling allowance to such employee.
12.4 Should any allegations of an occurrence of fraudulent behaviour be
received and be investigated, the Municipal Manager may suspend the
payment of a travelling allowance to such employee until the outcome
of the investigation.
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
913. EFFECTIVE DATE
This policy becomes effective from date of council resolution being 01
July 2018
Policy Title: Travelling Allowance Policy Financial Year: 2019/2020
Status: Draft for review - Submitted to Council on 29/3/2019 with Draft Budget per Item
C/2/135/03/19
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